Jordan’s jobless rate rises to 14.7% in Q2

By bne IntelliNews July 28, 2016

Jordan’s unemployment rate increased to a worrying 14.7% in the second quarter of 2016 from 14.6% in Q1 and 11.9% in Q2 2015, amid lower hiring in the construction and agricultures sectors, the statistics office (DoS) said. Fierce illegal competition from Syrian refugees undertaking low-skilled jobs that Jordanian tend to avoid is also weighing on the index.

Favourable seasonal hiring in H2, mainly during the peak summer (tourism) season and end-year festivities, will likely help cut the jobless rate by end-year.

Jordan’s economic activity opened the year on a weak note with real GDP growth slowing to 2.3% y/y in the first quarter of 2016 from a 2.6% annual expansion the preceding quarter, as growth lost steam across the key economic sectors despite remaining afloat. The agriculture sector expanded by a real 6.4% y/y in Q1, braking from 14.1% y/y in Q4 2015, and contributing just 0.22pp, down from 0.57pp the previous quarter.

The construction sector grew a mild 2.6% y/y in Q1 2016 due to high base effects and lower GCC investments amid falling oil prices.

The unemployment rate among men grew to 12.9% in Q2 from 12.7% in Q1 while that among females decreased to 22.8% from 23.7% in Q1.

The bad news is that the jobless rate among people with high education remained high in Q2 despite falling to 18.6% from 20.2% in Q1.

The highest rate of unemployment was recorded in the age group 15-19 and 20-24 years by 40.2% and 33.3% respectively. The highest jobless rate was recorded in the Ajloun province at 19.5% and the lowest rate was recorded in Amman governorate at 12.1%.

Related Articles

Erdogan: Turkey may strike Kurdish militants in Iraq’s Quandil Mountains “at any moment one evening”

Turkey will strike Kurdish militant camps in the mountains of northern Iraq if Baghdad does not itself clear the area of militants, President Recept Tayyip Erdogan said on June 7. On June 6, ... more

UAE investor to develop $500mn agri-food group in Romania

The Al Dahra Group of the United Arab Emirates (UAE) wants to purchase nearly 60,000 hectares of agricultural land along the Danube River, develop a logistics company including water and road ... more

UAE to buy major stakes in Kazakh special economic zones

The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more